Partnership Law Act 2019

Relationship of partners to third persons and to each other - Relationship of partners to one another

45: Partners share equally in capital and profits and contribute equally to losses

You could also call this:

"Partners in a business share the money they make and the money they lose equally"

When you're part of a partnership business, you and your partners share everything equally. This means you all get the same amount of money from the business's profits. It also means you put in the same amount of money to start or run the business.

If the business loses money, you and your partners must all pay an equal share to cover these losses. This applies whether the losses are from the money you put into the business or from other reasons.

Remember, being in a partnership means sharing both the good and the bad parts of the business equally with your partners.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS206045.


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Part 3Relationship of partners to third persons and to each other
Relationship of partners to one another

45Partners share equally in capital and profits and contribute equally to losses

  1. All the partners are entitled to share equally in the capital and profits of the partnership business.

  2. All the partners must contribute equally towards the losses of the firm (whether the losses are of capital or otherwise).

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